Lower borrowing offers some rare good news to George Osborne
George Osborne's harsh medicine for the deficit hit home in September as some rare cheer about the nation's dire public finances left the Chancellor breathing a sigh of relief.
Net borrowing of £14.1 billion in September was far lower than the £15 billion expected. This left borrowing for the first six months of the financial year at £63.5 billion, £7.5 billion below last year.
That would put Osborne on course to meet the £122 billion deficit target set by the Office for Budget Responsibility this year - but experts warned stalling growth could scupper his ambitions.
The OBR is currently pencilling growth of 1.7% this year, but this is certain be slashed next month amid turmoil in the eurozone as leaders grope for a solution to the region's debt crisis,
Ernst & Young ITEM Club economic adviser Nida Ali warned the Government "still has a difficult road ahead".
"Adverse developments in the global economy have weakened the UK's growth outlook considerably," she said.
The Treasury's coffers were boosted by a £1.6 billion increase in tax receipts over last year.
Departmental spending was down £1.3 billion year-on-year despite a big jump in interest payments on the nation's £967 billion debt pile to £2.7 billion, a record for September.
